February 6, 2017

Fiduciary Rule Update

coffee shop meeting

President Donald Trump signed an executive order on Friday regarding the Department of Labor’s Fiduciary Duty Rule. We believe that certain media outlets have inaccurately characterized this action as the “rolling back” of a consumer protection rule.

We wrote a piece about the Fiduciary Rule and our stance in 2015, which can be found below:


We were anticipating some changes in our business related to the new rules established by the Department of Labor and certainly supported the effort to protect investors. However, one thing that cannot be changed by any piece of legislation is our commitment to our clients. Every advisor should act in his or her client’s best interest. Larry has held this philosophy for more than 35 years and believes that, “The best interest of the client is the only interest that matters.”

However, the Fiduciary Rule set for implementation this spring could unintentionally and negatively impact the ability of Americans to save for retirement, particularly those with more modest means. We think that putting the enactment of this rule on pause while it is further vetted is the right thing to do.

Ultimately, we believe that clients and advisors both benefit from a fiduciary standard of care that applies to all types of personal investment advice. The challenge is in defining and implementing standards that define what a fiduciary should or should not do. We will continue to monitor these developments over the coming months. In the meantime, thank you for the continued privilege of helping you achieve your financial goals. Please don’t hesitate to reach out to us should you have any questions.

Bottom Line: Nothing has changed for us with the new executive order. We support a fiduciary standard, but did not agree with all of the Department of Labor’s new rules. We believe President Trump did the right thing in this case.


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